main1event
30th October 2008, 20:57
Just like I thought and why I exited my silver positions today. Silver is down .40 overnight. Keep in mind that miners are down not only because of the price of metals but the general market. So if the market goes up commodity stocks could as well.
Now for my thoughts. I'm still under the impression that Silver has bottomed. That hammer the other day was pretty telling. I'm fairly confident that the dollar has topped too, even though its rallying now. Hey it fell $3.00 from its high its bound to bounce.
The market in general isnt looking to bad, internals look pretty good for now. So here is how I'd play the game. All eyes should be on Gold, if it breaks 71 decisively Silver may fall below 9. I really think 8.90 or 9 is the last line in the sand. Also watch the big players like PAAS and NEM, they both closed pretty strong today even with the silver weakness. That is a good sign but we'll have to pay close attention tomorrow. The metal stocks will lead the metals out of this.
Tomorrow Silver should reach 9 or so. In all fairness the gap will be closed at 9.05 so anything around that would be a great buy, assuming that the bottom is in. Which I am still under that impression.
I've seen many people ask why bottom fish. The truth is that every entry point has its risks. I've been in stocks with powerful uptrends that turn quickly. I see many bargains here but if this market goes lower there will be yet more bargains, which is entirely possible. We are in a cyclical bear market, we might rally for the next 3 to 6 months but I believe we will resume this trend later in the spring.
Now for my thoughts. I'm still under the impression that Silver has bottomed. That hammer the other day was pretty telling. I'm fairly confident that the dollar has topped too, even though its rallying now. Hey it fell $3.00 from its high its bound to bounce.
The market in general isnt looking to bad, internals look pretty good for now. So here is how I'd play the game. All eyes should be on Gold, if it breaks 71 decisively Silver may fall below 9. I really think 8.90 or 9 is the last line in the sand. Also watch the big players like PAAS and NEM, they both closed pretty strong today even with the silver weakness. That is a good sign but we'll have to pay close attention tomorrow. The metal stocks will lead the metals out of this.
Tomorrow Silver should reach 9 or so. In all fairness the gap will be closed at 9.05 so anything around that would be a great buy, assuming that the bottom is in. Which I am still under that impression.
I've seen many people ask why bottom fish. The truth is that every entry point has its risks. I've been in stocks with powerful uptrends that turn quickly. I see many bargains here but if this market goes lower there will be yet more bargains, which is entirely possible. We are in a cyclical bear market, we might rally for the next 3 to 6 months but I believe we will resume this trend later in the spring.